More IRA Scrutiny Ahead

By

Kelly Greene

Apr 9, 2013 10:48 am ET

The Internal Revenue Service already is making noise about individual retirement account contributions and withdrawals.

According to a letter last month from one of its commissioners to Rep. Steve Israel (D., N.Y.), the agency is gearing up for a “compliance effort” designed to get IRA owners to stop making excess contributions to their accounts–and to take out enough money in retirement, at which point they owe income tax on it.

As reported in Weekend Investor, the initiative should begin by Sept. 30, the letter says. The agency plans to send “soft notices” to taxpayers before the next filing season starts in January 2014, it continues.